Complexity Reduction: Cleaning House Without Sacrificing Innovation

by George Young on September 2nd, 2010

As the mid-year economic reports on 2010 roll in, it is becoming more likely that we’ll continue to see slow market growth for several months or even years. The competition for tentative consumers during this time will place even more pressure on food and beverage (F&B) manufacturers to manage costs and improve operational efficiency—while still driving innovation. Those best positioned for both short-term and long-term success will be the F&B companies that can actively corral the complexity around these demands.

For the F&B industry, complexity is not merely a matter of raw materials or SKUs. It is an inherent part of the business structure resulting from product proliferation, merged operations, supply chains, and reorganizations. Failure to manage this complexity can paralyze an organization’s ability to drive innovation and growth. The key then is to maintain complexity where it matters and drive it out where it’s unnecessary.

Topics: Article, Complexity Management, CPG, F&B, Food and Beverage, Food Manufacturing, Manufacturing, Product Rationalization, Rationalization, SKU, SKU Rationalization

About the Author

George Young, Founding Partner George is a founder of Kalypso, lead singer of Vernon Trumbull and His Kinsmen, the Stick Wigglies and leader of the Gags. Motto: Don't just question authority - question everything. Read more articles by George Young